Renewable Energy Procurement
From Open Risk Manual
Definition
Renewable Energy Procurement is the sourcing (Procurement) of Renewable Energy to meet the energy needs of an organization.
Alternative expressions use Green or Sustainable instead of Renewable and Power instead of Energy.
Concepts
- Energy Consumer is any entity (physical or legal person) that engages in Energy Consumption in the process of economic activity.
- Energy Requirement is the total amount of Energy (per different Energy Type) that is required by an organization or sector to perform its activities
- Energy Retailer is an entity selling Energy to final consumers
- Green Power is a specific quality of energy that can fulfill the energy requirement while also addressing environmental or other impacts
- Sustainable Procurement means ensuring that the energy procured by an organization achieves value for money and generate benefits not only for the organization, but also for the environment, society and the economy
Renewable energy procurement requires the presence and use of additional institutional arrangements, information flows, process and tools that will enable the credible attribution of qualities to energy consumption. The process is non-trivial due to the fact that in important energy systems the provision of energy commingles different sources (there is no provenance of origin).
Issues and Challenges
- Fraudulent representations
- Greenwashing
